Three new companies are scheduled to make their market debut on July 16 after completing their fund-raising through initial public offerings (IPOs) recently. On the same day, three public issues—two from the mainboard segment and one SME issue—will close for subscription.
Laser Power & Infra, a mainboard company, will be listed on both stock exchanges, while the other two belong to the SME segment, with Happy Steels making its debut on the NSE Emerge platform and Devson Catalyst on the BSE SME platform.
All three companies had closed their IPOs on July 13.
Ahead of listing, shares of Laser Power & Infra were trading at a grey market premium (GMP) of around 20 percent, while Happy Steels commanded a premium of about 15 percent. Devson Catalyst attracted the strongest premium among the three, at more than 40 percent over its final issue price, according to market observers.
Generally, market participants track the grey market premium to gauge the possible listing price.
Kolkata-based power transmission and distribution products manufacturer Laser Power & Infra received massive demand for its IPO, which was subscribed 38.94 times. Qualified institutional buyers (QIBs) bid 92 times their allotted quota, non-institutional investors (NIIs) subscribed 43.3 times their reserved portion, and retail investors subscribed 6.59 times their quota.
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The company raised Rs 742 crore through its initial public offering, comprising a fresh issue of shares worth Rs 542 crore and an offer-for-sale (OFS) of shares worth Rs 200 crore, at a final issue price of Rs 214 per share.
Laser Power, which manufactures power cables and conductors and also undertakes engineering, procurement, and construction (EPC) projects in the power distribution sector, plans to utilise Rs 490 crore of the net fresh issue proceeds for loan repayment, while the remaining funds will be used for general corporate purposes.
Punjab-based automotive components maker Happy Steels mobilised Rs 25 crore through its maiden public issue, which was subscribed more than 72 times during July 9-13. The IPO consisted entirely of a fresh issue, and the company fixed the offer price at Rs 66 per share.
The IPO proceeds will be utilised primarily for the purchase of additional plant and machinery and the repayment of loans, besides meeting general corporate purposes and offer-related expenses.
Gujarat-based Devson Catalyst, which manufactures catalysts, adsorbents, and ceramic balls for various industrial processes, raised Rs 42.3 crore through its maiden public issue at Rs 118 per share. The proceeds will be used to set up a new manufacturing unit, meet working capital requirements, and fund general corporate purposes.
The public issue received an overwhelming response from investors, with the IPO being subscribed more than 200 times during the three-day bidding period from July 9 to July 13.
Meanwhile, on July 16, three public issues—SBI Funds Management, Alpine Texworld, and Millworks Technologies—will close for subscription.
The Rs 9,813-crore initial share sale of the country's largest asset manager, SBI Funds Management, has been subscribed 2.77 times since opening on July 14, while textile company Alpine Texworld's public issue has received 80 percent subscription. Both belong to the mainboard segment.
In the SME segment, Millworks Technologies, which manufactures precision components and assemblies for the railway, aerospace, defence, metro rail, drone, and semiconductor industries, has garnered strong demand for its IPO, which has been subscribed 44.6 times so far.